InfraCo Africa invests to pioneer Zimbabwe’s first project financed solar IPP
Harare, Zimbabwe: ARE Member InfraCo Africa, has signed an agreement with Energywise Equipment (Pvt) Ltd (Energywise) and Impala Power Company Ltd (Impala), investing USD 1.5m to progress development of the 30 MWac Vungu Solar project in Zimbabwe’s Midlands Province. Vungu Solar is poised to become Zimbabwe’s first internationally project financed solar Independent Power Producer (IPP).
InfraCo Africa’s Head of Business Development, Omar Jabri, said, “We are proud to be working with local developer, Energywise, and the team at Impala to progress this pioneering project which aligns with PIDG’s commitment to improving energy production and access in countries with access gaps. Vungu Solar will deliver 30 MWac of additional clean power to Zimbabwe’s national grid, promoting sustainable economic development without jeopardising the country’s climate goals. By piloting the government’s standardised project documentation, Vungu Solar also has the potential to transform the Zimbabwean energy market by unlocking further private sector finance for solar IPPs in the future.”
Vungu Solar was selected by the Government of Zimbabwe as its preferred bidder in a national pilot programme designed to develop a suite of standardised documentation to be used by solar IPPs in the country. With support from the Africa Legal Support Facility, the Ministry of Energy and Power Development prepared a standardised Power Purchase Agreement (PPA), Government Project Support Agreement, and central bank undertaking, the details of which are being negotiated with Vungu Solar.
Culven Chipfumbu, Director, Energywise Equipment said, “The solar power plant will produce 30MWac of electricity which is equivalent to carbon equivalent emission savings of c.75,000 tonnes per annum, a significant contribution to Zimbabwe’s Intended Nationally Determined Contributions to the reduction of carbon emissions. Vungu Solar intends to be gender sensitive and disability inclusive in its staff recruitment plan.”
Managing Director of Impala Power, Paul Webb, added, “As well as contributing directly to the vital expansion of power generation in Zimbabwe, we hope that Vungu Solar will pave the way for the international financing of all renewable energy projects in the Ministry of Energy’s project pipeline. By ensuring the availability of clean electric power to households and industry, this would provide a massive boost to Zimbabwe’s socio-economic development.”
The project will contribute towards delivery of SDG 7 – Access to affordable clean energy – and SDG 13 on climate action.
Having advanced negotiations with Zimbabwe Electricity Transmission and Distribution Company around a bankable 25-year PPA, Vungu Solar is expected to pilot the use of the country’s new standardised documentation. It is anticipated that the pilot will enable the government to attract future private sector investment to grow the country’s renewable energy sector.
– Source